Question: Scott Enterprises, a client of Stark & Associates, an accounting firm, claimed that Stark fraudulently prepared an audit. To hold the accounting firm liable, which of the following elements must be established? Failure to keep Scott Enterprises information confidential. Failure to exercise the degree of skill and competence required of an ordinarily prudent accountant under the circumstances. Knowledge that Stark's junior auditor used tracing instead of vouching in the audit process. Knowledge that a statement of material fact was false.